Sugar inflation is affecting local bakeries

BIRMINGHAM, Ala. (WBRC) - We often see stories about grocery prices soaring with inflation, but it is hitting some of your local sweets vendors even harder.

“We didn’t raise prices after we first opened for three years. And then another three years after that, but we’ve raised them this year, we had to raise them last year,” said co-owner of Heavenly Donut Co., Brock Beiersdoerfer. Supply chain issues have caused flour and sugar to soar about 20 percent in a year, and Heavenly Donut Co. is feeling ever penny.

“It’s, it’s been probably a 40% increase in all sugar related products. Our paper products like boxes, cups, things like that had been probably doubled in price in the last few years,” Beiersdoerfer said. They have had to raise the cost of their sweet treats to keep up. Former University of Alabama Business Professor Bob Robicheaux says inflation has hit certain sugar and other ingredients disproportionately.

“Farmers need fertilizer to grow their crops. Sugar cane or sugar is a product that is very transportation unfriendly. In other words, it’s a low unit value, so it costs a lot,” Robicheaux said. Transportation costs drive up other prices too.

“Our self made problem of dropping our oil capacity dramatically and instantly, is now only manifesting itself in the form of all these other products that cost so much more, Robicheaux said. The donut shop says they’ve had an increase in customers, which has helped them stay in business.

“We’ll take a week off and start making things thanksgiving donuts and then we’ll head straight into Christmas donuts,” Beiersdoerfer said.

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